Dublin, Oct. 23, 2024 (GLOBE NEWSWIRE) — “India’s Alternative Lending Market Data Book and Investment Opportunities – 75+ KPIs on Alternative Lending Market Size, By End User, By Financial Model, By Instrument payment, by loan type and Demographic Report – Second Quarter 2024 Update” has been added to ResearchAndMarkets.com’s offering.
Alternative lending in this region is expected to grow by 26.3% on an annual basis to reach $9.51 billion in 2024. The medium to long-term growth story of alternative lending in India remains strong. Adoption of alternative lending is expected to grow steadily over the forecast period, registering a CAGR of 17.7% during 2024-2028. The alternative lending market in the country will grow from $7.53 billion in 2023 to reach $18.24 billion by 2028.
This report provides a detailed analysis of the Alternative Data Lending industry, covering market opportunities and risks across a variety of industry categories. With over 50 country-level KPIs, this report provides a comprehensive understanding of alternative lending market dynamics, market size and forecast, and market share statistics.
The alternative lending sector in India is experiencing dynamic growth, driven by digital innovation and evolving market needs. Key developments include new product launches, strategic partnerships and significant mergers and acquisitions. Regulatory measures by the RBI are increasing transparency and consumer protection, promoting responsible lending practices. Despite the challenges, the sector is poised to play a crucial role in expanding access to credit and shaping the future of financial services in India.
Growth in the alternative lending sector
Alternative lending in India has shown robust growth, fueled by increased digital adoption and the need for accessible credit among underserved segments. The financial sector is expected to grow in the coming months, especially in areas such as peer-to-peer lending and fintech solutions. New data analytics are improving the way credit is scored and making financing easier for small businesses and individuals. Although there are challenges related to funding and market conditions, alternative lending remains an important part of India’s changing financial landscape.
Product launches and innovations
In India’s alternative lending sector, Jar has launched digital lending services through partnerships with Liquiloans and other non-banking financial institutions to address credit needs in underserved markets.
PhonePe is seeking an NBFC license to diversify its offerings, while Jupiter, a neo-banking platform, has successfully obtained such a license to offer lending products. This reflects the trend of fintech companies expanding into the alternative lending space
Strategic Partnerships
Jar’s Partnerships with NBFCs – Jar, a savings startup backed by Tiger Global, has entered the digital lending space through partnerships with Liquiloans and other NBFCs. These partnerships aim to address the credit needs of underserved markets by incorporating lending solutions on Jar’s platform, making credit more accessible to a wider customer base.
Mergers and acquisitions
Svatantra’s acquisition of Chaitanya India Fin Credit Limited: Svatantra, a microfinance provider, raised $233 million in a funding round led by Advent International and Multiples. This investment follows its acquisition of Chaitanya, positioning the combined entity as one of India’s largest non-banking microfinance companies. This merger aims to increase service delivery and expand its reach in microfinance, especially focusing on women entrepreneurs.
Regulatory Changes
RBI Digital Lending Guidelines – The Reserve Bank of India (RBI) issued guidelines to all lenders, including banks and NBFCs, to protect the data of borrowers using digital lending applications. These guidelines mandate transparency in loan products, comprehensive digital overviews for borrowers and adherence to data privacy standards.
Lending Service Providers (LSP) Framework – RBI has introduced draft guidelines for Lending Service Providers (LSP). These guidelines facilitate transparency by providing borrowers with digital summaries of loan products from multiple lenders. This framework promotes informed decision-making among consumers and improves the overall lending ecosystem.
Enabling Regulations for Alternative Lending – RBI’s regulatory initiatives are expected to encourage more responsible lending behavior by Regulated Entities (REs) in the alternative lending space. These regulations set the boundaries of industry behavior while ensuring a balance between fostering innovation and protecting the public interest.
Harmonized approach to regulations – RBI is adopting a ‘same activity, same risk, same regulations’ approach to enhance supervisory capabilities and identify systemic risks in the alternative lending sector. This approach allows for differentiated regulatory treatment based on the specific risks associated with each financial entity and type of activity.
Main attributes:
| The report attribute | The details |
| Number of pages | 189 |
| Forecast period | 2024 – 2028 |
| Estimated market value (USD) in 2024 | 9.5 billion dollars |
| Estimated market value (USD) by 2028 | 18.2 billion dollars |
| Compound annual growth rate | 17.7% |
| Regions covered | INDIA |
Scope
Economic Indicators of India
- Gross Domestic Product at Current Prices
- Population
- The unbanked population
- Unemployment rate
- Loan default rate
Size and Forecast of Alternative Lending Market in India
- Transaction value
- Average transaction value
- Transaction volume
Alternative Lending Market Size and Forecast in India by End User
- End User – Business
- End User – Consumer
Sizing and Forecasting Alternative Lending Market in India by Finance Models
- Consumer lending in the P2P marketplace
- Business lending in the P2P marketplace
- Property lending in the P2P marketplace
- Balance of Consumer Credit
- Business balance crediting
- Lending of properties on the balance sheet
- Trading Bills
- Debt-based securities
- Equity-based crowdfunding
- Real Estate Crowd funding
Alternative Lending Market Size in India and Forecast by Payment Instrument – Value, Volume and Average Transaction Value
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument for the P2P Consumer Lending Market
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument for the P2P Business Lending Market
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument for P2P Property Lending
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative lending market sizing and forecasting by payment instrument for on-balance sheet consumer credit
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative lending market size and forecast by payment instrument for on-balance sheet business lending
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative lending market size and forecast by payment instrument for on-balance sheet property lending
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument for Bill Trading
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument for Debt-Based Securities
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument for Equity-Based Crowdfunding
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument for Real Estate Crowdfunding
- Ready money
- Controls
- Credit transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative lending market size in India and forecast by loan types
- B2C loans
- Personal loans
- Prepayment of payroll
- Home Improvement
- Education/Student Loans
- Point of sale
- Car loans
- Medical loans
- B2B loans
- Lines of credit
- Merchant Cash Advance
- Invoice factoring
- Revenue financing
Alternative Analysis of Lending in India by Consumer Attitude and Behavior
For more information about this report, visit https://www.researchandmarkets.com/r/nl0zni
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Indian Alternative Lending Market
